HS 354 Sources of Retirement Income Questions | 100% Correct Answers | Verified | Latest 2024 Version

Social Security as also know as? - Old Age, Survivors and Disability Insurance system (OASDI) What is Social Security combined with to provide a level of retirement security for the vast majority of Americans? - Medicare How might a planner use other forms of insurance when communicating with clients? - Most would not complain that they don't get their money's worth from a policy because it didn't burn down. They would be content with protection from catastrophic loss and happy that nothing happened. Planners need to show that lack of adequacy of retirement income is a real catastrophic concern. Explaining to the clients that losing money if they die after 62 is just one way to look at the decision. Insurance from extreme poverty in old age may be more important than extra dollars to enhance a lifestyle in the early years of retirement. How many people receive Social Security benefits? - A. One of six Americans receives benefits from the system. B. Approximately 96 percent of working-age Americans are covered by the system. C. Who receives Social Security? (1) 34.7 million retired workers (2) 8.2 million disabled workers (3) 4.4 million widows and widowers (4) 2.5 million spouses (5) 1 million adults disabled since childhood (6) 3.4 million children How is Social Security funded? - A. There is a 6.2% payroll tax (also known as FICA) up to the taxable wage base. Both the employer and employee pay this tax. B. There is a 1.45% FICA tax on all income.C. There is a 12.4% Social Security self-employment tax (aka SECA tax) up to the taxable wage base; half of the tax is deductible from income. 2% lower in 2012. D. There is a 2.9% SECA tax on all income. What are the 2 Social Security trust funds and Medicare fund? - A. Old-age and survivors insurance B. Disability insurance C. Medicare Part A D. Medicare Part B What is the eligibility for worker's retirement benefits? - A. Worker must earn 40 coverage credits to earn the basic retirement benefit. B. Must earn a minimum of $4,800 (2014) and earn 4 quarters of coverage. C. That means only 10 years of substantial employment to qualify. D. Benefit formula is applied to what is referred to a average indexed earnings looking at 35 highest years of wage history. E. If fewer than 35 years of work, 0's go into the calculation of the formula. A person would benefit from additional years of work. F. Full benefits begin at full retirement age, but reduced benefits can begin at 62 and deferral credits can be earned till 70. What are the additional Social Security benefits paid once an eligible worker claims benefits? - A. A nonworking spouse age 62 can claim benefits if there is a benefit based on their own work history. Can get the greater of the worker's or spousal benefit. B. Spouse caring for a child under 16 can receive full benefits regardless of the spouse's age. C. Benefits can also be paid to dependent, unmarried children under 18 (under 20 if in secondary school). D. Benefits to children 18 or older who were disabled before age 22. E. There is a family maximum for 2 benefit families. F. Divorced spousal benefit is paid to an unmarried divorced spouse as long as the marriage lasted 10 years, this doesn't affect the total family benefit. What is the amount of Social Security retirement benefits? - A. Discriminates in favor of lower paid workers. B. The amount of income SS replaces is called the S